Boomers' savings would only last seven years in 'ideal' retirement, study finds

According to a new study, the average baby boomer's savings will only be seven years at retirement unless they curtail their spending during their golden years.
According to a survey by Charles Schwab, boomers have saved an average of $ 920,400 for retirement, but expect to save $ 135,100 per year to maintain their ideal retirement lifestyle. That means their savings would run out after seven years.
"The boomers in this study have saved for retirement and are confident, but for many there is a potential gap between what they have saved and the retirement they envision," said Rob Williams, vice president of financial planning at Charles Schwab . "The reality is that they can come up short."
So how do you expect to hold onto that vision? By working more and putting their needs first.
According to a survey by Charles Schwab, boomers have saved an average of $ 920,400 for retirement, but expect to save $ 135,100 a year to maintain their ideal retirement lifestyle. (Source: Getty Creative)
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Work longer and work part time to keep that dream retirement going
The study found that prospective retirees are likely to retire at age 66 seven years later than their peers who have been retired for at least five years. That means they want to work longer, which could help increase their savings and reduce the need for retirement.
"More years to retire is better than nothing," said Williams, "especially when you use that time to think about how much money you will need in case things don't go as planned."
A third of retirees also plan to work part-time after they retire, compared to just 2% of those who have already retired.
More than half of those financially affected by the coronavirus pandemic intend to develop a clear financial plan, and nearly one in four said they started saving in an emergency fund.
"To make sure you don't survive your money, it's important to have a complete financial plan that has been tested against market downturns, healthy risks and other unexpected factors," said Tony Zabiegala, chief operations officer at Strategic Wealth Partners. a finance company.
Boomers plan to prioritize themselves over their children
Even if more and more young adults live with their parents, baby boomers don't let their children influence their age goals, according to the Schwab study.
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About 2 in 3 baby boomers think they would rather spend money in retirement than leave an inheritance for their children. Four in ten believe that their quality of life will be better than that of their children in retirement.
"Election pressures, global warming and the pandemic make them a little more concerned about the long-term future of their children," said Williams, "who also have financial challenges with college education."
Dhara is a reporter for Yahoo Money and Cashay. Follow her on Twitter at @Dsinghx.
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